AMN / WEB DESK
The World Bank has said that India’s medium-term outlook is expected to remain positive amid challenging external conditions. According to the World Bank’s latest India Development Update: ‘India’s Trade Opportunities in a Changing Global Context’, the growth is forecast to reach 7 percent in the Financial year 2024-25.
It will also remain strong in 2025-26 and 2026-27. It added that with robust revenue growth and further fiscal consolidation, the debt-to-GDP ratio is projected to decline from 83.9 percent in Financial Year 2023-24 to 82 percent by 2026-27. The current account deficit is expected to remain at around 1 to 1.6 percent of GDP up to Financial Year 2026-27.
The India Development Update also observed that India remained the fastest-growing major economy and grew at a rapid clip of 8.2 percent in Financial Year 2023-2024. It added that the growth was boosted by public infrastructure investment and an upswing in household investments in real estate.
It also highlighted the critical role of trade for boosting growth. It added that the global trade landscape has witnessed increased protectionism in recent years. It said the post pandemic reconfiguration of global value chains, triggered by the pandemic, has created opportunities for India.
The report emphasized that India has boosted its competitiveness through the National Logistics Policy and digital initiatives that are reducing trade costs. However, it also noted that tariff and non-tariff barriers have increased and could limit the potential for trade focused investments. World Bank’s Country Director in India, Auguste Tano Kouame underlined that India’s robust growth prospects along with declining inflation will help to reduce extreme poverty.